Accounting Adjustments under Rule 6(3) [Service Tax] in Tally.ERP 9

The amount refunded for not providing of the service for which service tax was paid on receipt of such money can be adjusted against the liability of the subsequent period under rule 6(3). This adjustment entry can be recorded in Journal using the Voucher Class by selectingTax Paid but service not rendered Rule 6(3) Adjustment.

Example:On 27-9-2012 ABC company received Advance of Rs. 50,000 from CreativeIn Ad Agency towards the Event Management Services to be provided.

On 28-9-2012 Paid the Service Tax on the advance received to the Government.

On 29-9-2012 CreativeIn Ad agency cancelled the Services and ABC company paid the Advance received Rs. 50000 (including the Service Tax paid to the Government)

In Service Tax Payment Details screen provide the service tax payments details.

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3. Record the Journal Voucher (To account Service tax portion paid to the government)

Service Tax portion on the advance received is paid to government. On cancellation of service contract, service tax amount already paid to the government is also returned to the party. To account such portion of tax paid to the government and adjust towards the mount payable to the party record a adjustment entry in Journal Voucher

To account the account the tax already paid a control account is created under Suspense A/c.

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Go toGateway of Tally > Accounting Vouchers > F7: Journal

InDebitfield select the control account created to account the tax already paid -Service Tax Paid to Governmentand mentionRs. 5,500.18inAmountfield.

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